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Construction leaders unite to unlock $14.1 billion productivity prize

Australian Constructors Association

Australia’s construction industry is sitting on a $60 billion-a-year productivity opportunity—and leaders say it’s time to start breaking it down and delivering real change. That was the clear message from the FF25 Leaders’ Exchange, where more than 120 of the nation’s most senior decision-makers gathered in Brisbane last night to explore practical reforms to close the industry’s long-standing productivity gap.

Held behind closed doors on the eve of the Foundations and Frontiers 2025 forum, the event brought together leaders from government, industry, unions and academia to confront one of the economy’s most pressing challenges.

“The FF25 Leaders’ Exchange was about moving beyond awareness and into action,” said Australian Constructors Association (ACA) CEO Jon Davies.

“The key to unlocking the $60 billion prize lies in focusing on achievable steps. We’re not trying to boil the ocean. Even modest changes could yield enormous returns. Just a few targeted reforms could deliver $14.1 billion in value annually.”

Drawing on research by Oxford Economics, participants explored three scenarios that together reveal the multi-billion-dollar productivity prize is within reach:

• Scenario 1: Cutting indirect costs by just 10% could save the industry $5.7 billion annually.
• Scenario 2: Halving tender costs for bidders and reallocating resources to project delivery could generate $743 million in additional work and return $2.1 billion to the economy.
• Scenario 3: A more flexible RDO system could unlock $2.3 billion in additional work, driving a $7.3 billion economic boost.

“These aren’t abstract ideas—they are practical levers that, if pulled, could shift the dial significantly,” said Mr Davies. The challenge now is aligning will with action.”

Insights from the FF25 Leaders’ Exchange will feed directly into broader discussions at Foundations and Frontiers 2025 being held at Nissan Arena today and inform upcoming submissions to the Queensland Productivity Commission and the National Economic Reform Roundtable.

“The fact that so many leaders made time to be in the room shows the appetite for change is real—and so is the responsibility,” said Mr Davies. “Now we need aligned action to realise the full $60 billion prize.”                                                                                                           

 

FF25 forum details

• Date: Wednesday 6 August 2025
• Location: Nissan Arena, Brisbane
• Attendees: Senior government officials, industry CEOs, union leaders, major supply chain representatives and major project clients

Media opportunities

• FF25 agenda
• Media passes and photo opportunities

About us:

The Australian Constructors Association is the only representative body for contractors delivering vertical and horizontal construction projects, as well as undertaking infrastructure asset management. Our members construct and service the majority of major infrastructure projects built in Australia every year. Our goal is to create a more sustainable construction industry.

Contact details:

Megan Anderson, Head of Media and Communications

ph: 0475 978 478 / e: [email protected]